Your errors are:
2014-10-10T12:24:19.171-04:00 [50124 warning 'Default'] ERROR: Vmount library: Error 1450 while error communicating with the driver -->
2014-10-10T12:24:19.281-04:00 [53372 warning 'Default'] ERROR 999 (loading hive) loading temporary hive \\.\vstor2-mntapi20-shared-06BC724A000010000000000003000000\WINDOWS\system32\config\SOFTWARE under key name mntApi265460644630401702.
2014-10-10T12:24:19.281-04:00 [53372 warning 'Default'] ERROR: Unable to load registry hive \\.\vstor2-mntapi20-shared-06BC724A000010000000000003000000\WINDOWS\system32\config\SOFTWARE, error 0x3e7.
The first one 1450 stands for "Insufficient system resources exist to complete the requested service."
Second one 999 stands for "Error performing inpage operation."
So try to config *only* your destination VM.
HTH
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Re: VCenter Converter Windows Server 2003 Enterprise SP2 98% Failed on reconfiguration
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